How to Find a Profitable Niche for Dropshipping

Trying to find the perfect business that is profitable includes lots of trials and errors. But when you have limited resources, you will make sure there’s almost no room for error. That said, you have to find that one business venture that could bring in money, namely a profitable niche for dropshipping.

For a lot of people, that venture is eCommerce. One particular field many are interested in is dropshipping.

What Is Dropshipping Business?

Dropshipping is a kind of retail method wherein the merchant never handles the product. They don’t stock items. In most cases, they have never even seen the products they sell.

Finding a Profitable Niche for Dropshipping Business

Merchants set up an online business and post the products they are selling. If an item is ordered, the merchant purchases the item from a third-party company. That company then sends the item straight to the buyer.

Third-party companies are often wholesalers and manufacturers.

Benefits of Dropshipping

Why is dropshipping getting more popular? What’s its advantage against traditional retail methods?

  • Less/Almost no capital needed – Its biggest advantage is that you don’t need to save up money for the capital. You can start your own eCommerce shop for free. Plus, you don’t have to spend thousands on stocking up products.
  • Easy – Setting up an online shop is easy. Since you’re not handling products physically, you also don’t have to worry about storage. You won’t even have to worry about packaging, shipping, ordering, and more.
  • Wide variety of products – Your shop can be a mixture of different items. For example, you don’t have to focus on clothing items only. If you wish to sell cosmetics and health products, you can as well.

How to Find a Profitable Niche for Dropshipping

That said, how do you find a profitable niche? Should it be trendy? Or should you go the normal route and sell what everyone is selling?

Know which Niche Sells

Try to research which niche sells the most on big eCommerce shops. Try eBay, Amazon, Wish, Shopify, or Oberlo. There are online tools that can help you know which categories/niche has more customers.

Trendy Niche

It’s easy to think that trending items sell best. Indeed, they will sell better for now. But the moment they stop trending and the hype goes down, you’re left with no sales.

That said, consider long-term but never disregard trend. You can think of a niche that always has a trending item. For example, clothing items always have something new as fashion evolves.

Have a backup niche in case you have difficulty finding a retailer for your first choice.

Know What’s Selling

Before you put your shop up, make sure you have a contract with a third party company. Find out what manufacturers are selling. Make sure they offer quality products and always do research.

You can also check social media platforms to check what sellers are selling. Survey what competitors are selling and how well they’re doing.

Dropshipping Business


Most importantly, ensure the items are of quality. They should be useful to your market and they are valuable to you. Lastly, check their prices and make sure these are right for the quality of the product. This way, you can find a profitable niche for dropshipping. To get you started, here’s a video about which niches will be profitable this year.

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